Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Contemporary Amperex Technology (CATL) / Event-Driven

<div>The <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> consists of stocks from the Shanghai Stock Exchange and the Shenzhen Stock Exchange and is one of the most widely tracked A-share indices with passive tracking products listed in multiple markets globally. There are CFFEX listed futures that trade actively as well.</div><div>
China Securities Index Co (CSI) will most likely announce the changes for the December rebalance after market close on 26 November and the changes will be effective after the close of trading on 10 December.
With over 90% of the review period complete, we see 26 potential changes at the upcoming December 2021 review. Estimated one-way turnover at the rebalance is 9.30% and will result in a one-way trade of slightly less than US$3bn.
The potential inclusions have outperformed the potential exclusions over the last 3 months but have given up a large part of the gains over the last couple of weeks. Given the trading history of past rebalances, we recommend buying the potential inclusions and selling the potential exclusions over the next couple of weeks and unwinding the positions post the end of the review period. There will then be more trading opportunities as we near the announcement date and implementation date.
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The Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) consists of stocks from the Shanghai Stock Exchange and the Shenzhen Stock Exchange and is one of the most widely tracked A-share indices with passive tracking products listed in multiple markets globally. There are CFFEX listed futures that trade actively as well.
China Securities Index Co (CSI) will most likely announce the changes for the December rebalance after market close on 26 November and the changes will be effective after the close of trading on 10 December.
With over 90% of the review period complete, we see 26 potential changes at the upcoming December 2021 review. Estimated one-way turnover at the rebalance is 9.30% and will result in a one-way trade of slightly less than US$3bn.
The potential inclusions have outperformed the potential exclusions over the last 3 months but have given up a large part of the gains over the last couple of weeks. Given the trading history of past rebalances, we recommend buying the potential inclusions and selling the potential exclusions over the next couple of weeks and unwinding the positions post the end of the review period. There will then be more trading opportunities as we near the announcement date and implementation date.


CSI300 Index Rebalance Preview (Dec 2021): Pullback Provides Entry Point

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:
<ul>
<li>The State Council has released a landmark document to define its medical insurance plan for the next four years.</li>
<li>It can be seen that the NHSA has clarified the direction and the coverage of "basic" medical insurance on some high-value consumables such as dental implants.</li>
<li>Related policies are released to support domestic medical devices and consumables. </li>
</ul>
Company news:
News about the updated progress on new drugs and cooperation agreement of <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <a href="https://www.smartkarma.com/entities/jw-therapeutics" target="_blank" data-smartkarma-citation="entities:29679:1" rel="noopener">JW Therapeutics (2126 HK)</a> and <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>.
Market review: 
Last week, stock price for healthcare sector in A share increased 0.05%, while CSI 300 increased 0.27% over the same period of time. 
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:

The State Council has released a landmark document to define its medical insurance plan for the next four years.
It can be seen that the NHSA has clarified the direction and the coverage of "basic" medical insurance on some high-value consumables such as dental implants.
Related policies are released to support domestic medical devices and consumables. 

Company news:
News about the updated progress on new drugs and cooperation agreement of Jiangsu Hengrui Medicine (600276 CH), JW Therapeutics (2126 HK) and Innovent Biologics Inc (1801 HK).
Market review: 
Last week, stock price for healthcare sector in A share increased 0.05%, while CSI 300 increased 0.27% over the same period of time. 
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Oct.1) - A Landmark Document Released, Dental Implants, Core Data Security

Industry viewpoints:
<ul>
<li>This year, the underlying logic of China's economy is being restructured.</li>
<li>Whether drugs or medical devices, once they are included in the scope of centralized procurement, there could be only two strategies.</li>
<li>There are still many uncertainties in regulation approval and commercialization of AI medical imaging products in China.</li>
</ul>
Company news:
News about the updated progress on new drugs, new cooperation agreement and M&amp;A deal of <a href="https://www.smartkarma.com/entities/alphamab-oncology" target="_blank" data-smartkarma-citation="entities:28213:1" rel="noopener">Alphamab Co Ltd (9966 HK), </a><a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH) </a>and <a href="https://www.smartkarma.com/entities/wenzhou-kangning-hospital" target="_blank" data-smartkarma-citation="entities:1100:1" rel="noopener">Wenzhou Kangning Hospital (2120 HK)</a>.
Market review:
Last week, stock price for healthcare sector in A share increased 0.61%, while CSI 300 increased 1.21% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:

This year, the underlying logic of China's economy is being restructured.
Whether drugs or medical devices, once they are included in the scope of centralized procurement, there could be only two strategies.
There are still many uncertainties in regulation approval and commercialization of AI medical imaging products in China.

Company news:
News about the updated progress on new drugs, new cooperation agreement and M&amp;A deal of Alphamab Co Ltd (9966 HK), Akeso Biopharma Inc (9926 HK), Innovent Biologics Inc (1801 HK), Jiangsu Hengrui Medicine (600276 CH) and Wenzhou Kangning Hospital (2120 HK).
Market review:
Last week, stock price for healthcare sector in A share increased 0.61%, while CSI 300 increased 1.21% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Bottom-Up

Shenzhen New Industries Biomedical Engineering-A / Equity Bottom-Up

Shenzhen New Industries Biomedical Engineering-A

Recently, <a href="https://www.smartkarma.com/entities/shenzhen-new-industries-biomedical-engineering-a" target="_blank" data-smartkarma-citation="entities:29889:1" rel="noopener">Shenzhen New Industries Biomedical Engineering-A (300832 CH)</a> (SNIBE) released its 2021/1H financial results. The revenue was RMB1.226 billion, up 26.35% YoY. Net profit attributed to shareholders was RMB429 million, down 9.90% YoY. Net profit after deducting non-recurring gains and losses was 383 million, down 12.28% YoY. The performance was lower-than-expected. Meanwhile, there was document about the centralized procurement on test reagents in the field of chemiluminescence in Anhui Province, which was released on August 19, 2021, and SNIBE’s share price decreased about 14.34% on August 20. This insight mainly analyzed the business of the Company and the potential impact of centralized procurement.

Recently, Shenzhen New Industries Biomedical Engineering-A (300832 CH) (SNIBE) released its 2021/1H financial results. The revenue was RMB1.226 billion, up 26.35% YoY. Net profit attributed to shareholders was RMB429 million, down 9.90% YoY. Net profit after deducting non-recurring gains and losses was 383 million, down 12.28% YoY. The performance was lower-than-expected. Meanwhile, there was document about the centralized procurement on test reagents in the field of chemiluminescence in Anhui Province, which was released on August 19, 2021, and SNIBE’s share price decreased about 14.34% on August 20. This insight mainly analyzed the business of the Company and the potential impact of centralized procurement. 

New Industries Biomedical Engineering (300832.CH) - The Centralized Procurement Changes the Logic

Industry viewpoints:<ul>
<li>The centralized procurement would be applied to chemiluminescence products, so the logic changes.</li>
<li>Recently, the National Health Commission and the National Health Care Security Administration jointly issued a new regulation about long-term prescriptions.</li>
<li>There is new information about the national VBP of insulin released.</li>
</ul>Company news:News about the updated progress on new drugs and license agreement of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/innocare-pharma-ltd" target="_blank" data-smartkarma-citation="entities:28355:1" rel="noopener">InnoCare Pharma Ltd (9969 HK)</a>, <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a> and <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK).</a>Market review:Last week, stock price for healthcare sector in A share decreased 7.28%, while CSI 300 decreased 3.57% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The centralized procurement would be applied to chemiluminescence products, so the logic changes.
Recently, the National Health Commission and the National Health Care Security Administration jointly issued a new regulation about long-term prescriptions.
There is new information about the national VBP of insulin released.
Company news:News about the updated progress on new drugs and license agreement of BeiGene Ltd (6160 HK), InnoCare Pharma Ltd (9969 HK), CSPC Pharmaceutical Group (1093 HK) and Innovent Biologics Inc (1801 HK).Market review:Last week, stock price for healthcare sector in A share decreased 7.28%, while CSI 300 decreased 3.57% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China

Shenzhen Mindray Bio-Medical Electronics Co., Ltd. manufactures and distributes medical equipment. The Company produces life information supporting, in vitro diagnostic, and medical imaging equipment equipment. Shenzhen Mindray Bio-Medical Electronics also produces supporting reagents.

Shenzhen Mindray Bio-Medical Electronics (300760 CH)

Price Gauge
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Shenzhen Mindray Bio-Medical Electronics (300760 CH)

CSI300 Index Rebalance Preview (Dec 2021): Pullback Provides Entry Point

With 90% of the review period complete, we see 26 changes to the CSI300 at the Dec rebal. One-way turnover is 9.3% and the one-way trade is US$3bn....

Brian Freitas

China Healthcare Weekly (Oct.1) - A Landmark Document Released, Dental Implants, Core Data Security

The insight analyzed a landmark document about medical insurance plan for the next four years,the direction and the coverage of basic medical...

Xinyao (Criss) Wang

China Healthcare Weekly (Aug.27)

This article analyzed the logic of China's healthcare sector while its economy is being restructured, two strategies to deal with centralized...

Xinyao (Criss) Wang

New Industries Biomedical Engineering (300832.CH) - The Centralized Procurement Changes the Logic

The insight analyzed Shenzhen New Industries Biomedical Engineering in terms of its business,the potential impact of centralized procurement in the...

Xinyao (Criss) Wang

China Healthcare Weekly (Aug.20)

The article analyzed the logic change due to the centralized procurement on chemiluminescence products, new regulation about long-term...

Xinyao (Criss) Wang

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